As a small business grows, those first few years come with a lot of work to get on top of your business finances. No one starting a small business can escape the need to carry out some form of bookkeeping to operate in the green.
Bookkeeping is keeping on top of day-to-day money-related tasks running through your business. That involves sending out your invoices, paying your various bills and subscriptions, chasing and processing payments, keeping on top of your expenses and being compliant with tax regulations – and paying it on time.
It sounds like a lot, right? If you didn’t start your bookkeeping on day one, it soon becomea even more. The bare minimum effort would be keeping a record of all the money flowing in and out of your business. Here are a few helpful hints to aid you with bookkeeping.
Bank Accounts and Software
The simplest way to make your working life simple is to set up a separate bank account for your business. That will save you incredible time and effort when reconciling your accounts.
Your regular bank may offer business accounts, or you may find the use of online or app-based accounts in today’s modern age of technology. Some of them don’t even charge a monthly fee.
Although you may feel it would be an unnecessary charge when starting, signing up for bookkeeping software can be hugely beneficial. Bear in mind that Making Tax Digital for the self-employed comes into play as of April 2024, meaning that regular returns to HMRC digitally will be in effect. Software such as Quickbooks or Xero may be a good headstart for you.
Stay in Control
With bookkeeping, you have to adopt a mindset of keeping on top of it regularly. Leaving everything to the last minute is stressful when running a business.
Ensure all invoices and receipts for everything you purchase for your business are kept neat. If you use online software, take pictures of your receipts and upload them straight away instead of compiling 12 months of transactions at the last hour. Find out when all relevant dates for HMRC submissions are, as some may vary on whether you are a limited company, sole trader or partnership. Keep them in your diary so you do not miss any dates and get fined for missing them.
Get the Help
If you need answers or support with your day-to-day bookkeeping, contact the team at Pebbles Bookkeeping for help and guidance. We specialise in all areas of bookkeeping services and payroll outsourcing services for small businesses in your area.